Challenges and Solutions for Zapp: A Case Study

This presentation discusses the challenges faced by Zapp, a UK-based grocery delivery start-up, including changing market trends, warehouse and delivering costs, changing tax rates, and more. It also provides solutions to overcome these challenges, such as market research, inventory control software, and adding innovation. Additionally, the presentation reviews key business support agencies in the UK.

Formative 2 Group
Presentation

Table of Contents
INTRODUCTION...........................................................................................................................3
Reviewing key business support agencies.......................................................................................3
Evaluation of start- up along with the challenges and problems faced by the organisation............4
About start- up.............................................................................................................................4
Challenges and problems faced by Zapp.....................................................................................5
Measures to overcome from the challenges faced by Zapp.............................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
At the time of establishment of the businesses certain factors are their which are to be
kept in mind and considered in order to make the businesses successful. This is why an
individual can take help of the support agencies before establishing the business. Support
agencies are the one who provide the best possible guidelines for starting the businesses. With
this start-up is business which is introduced for the first time that is the fresh business (Akinbola,
Sanni and Akinbola, 2019). The selected start up organisation for preparing this presentation is
Zapp. They deal in delivering grocery item and other essential products within 20 minutes at
home. It's headquarter is in London and came into existence in 2020. The founder of this start up
is Joe Falter who was initially the product leader at Amazon. This presentation will include the
details about the support agencies, along with the start- up of native country and will discuss the
challenges and problem faced by them. Lastly, the measures or solutions to overcome from that
problem is also discussed.
Reviewing key business support agencies
Business support agencies are the one who provide the guidelines and evaluate all the
possible outcomes or problems that could be faced by the organisation before it's establishment.
Some of the businesses support agencies are discussed below -
 Federation of Small businesses – This business support agency is working at national
level. It was founded in 1974 having headquarter in Blackpool, England. This agency
provides 24 hours consulting services (Wong, 2022). This organisation is involved in
providing legal advice, along with free businesses banking services. They are able to
generate a revenue of 25.6 million Euros.
 Enterprise Nation – Enterprise nation is the UK based consultancy, who are providing
guidance to the business at the time of its establishment with this if an organisation wants
to expand they training program is also conducted for them (Robb and Clark, 2021).
Online meeting as well as physical meeting is also conducted with the major business
minded persons. The businesses are also provided with the financial support for the
growth of the businesses so that it is taken to the next level.
 National Enterprise Network – The members of national enterprise network are
providing its services across England (Alnaggar, Gzara and Bookbinder, 2021). They are

involved in providing guidance and presenting the interest of the businesses in front of
the government. This is how the businesses are able to acquire additional benefits and
leads to a successful business.
 MI Ventures – The MI ventures provide the consultancy with the chat support system.
An individual can connect with the with the business expert with the help of online
chatting facility (Pourrahmani and Jaller, 2021). Legal as well as funding advice is being
provided by the consultancy. The strategies which can be used by the businesses in order
to become successful is also being told by the experts of consultancy.
 Business support helpline – The business support helpline is the support system agency
leaded by the government of UK. The consultancy provides the facility that they are able
to communicate with the clients through telephone, social media channels or by online
chatting system.
 Invest Northern Ireland – The invest Northern Ireland consultancy provides its services
starting to the end when they are able accomplish the goals decided by the organisations.
They aim to helps the local businesses and this is how they will be able to make
contribution towards the economy of nation. The prices charges by them is nominal as
they want to make the businesses successful and make its contribution towards the
economy. They also explore the places and help the businesses in deciding the best
suitable location for starting their businesses.
Evaluation of start- up along with the challenges and problems faced by the
organisation
About start- up
For preparing this presentation the selected Start- up is Zapp, they provide 24/7 grocery
delivery services. They deliver grocery item and other essential products within 20 minutes at
doorstep. It's headquarter is in London and came into existence in 2020. The founder of this start
up is Joe Falter who was initially the product leader at Amazon. Zapp is a mobile application
from where the customer can select the desired product which they want to consume. They after
placing the order the products will be delivered at home within 20 minutes as assured by them.
The customers are free to alive their services at any time. The delivery charges by them are fair
enough that any customer can avail their services. They just charge 1.99 Euros for delivery any

product at the doorstep, with this if the prices of total purchase made by the customer is more
than 30 Euros then, the company delivery the product free of cost. Along with charging fair
prices from the customers, organisation also pays fair wages to it's employees. The management
of company also take necessary steps to prevent environment. The vehicles or fleet services used
by the company for delivering services is electric so that no pollution could take place. Along
with it the bags used by the organisation for packing goods is recyclable paper. The organisation
is working with Felix Project so that the wastage of food could be avoided.
Challenges and problems faced by Zapp
In order to make the organisation successful certain challenges and problems are being
faced by Zapp which are stated below -
 Changing market trends – The taste and preferences of the customers keeps on
changing rapidly, due to which it is difficult for the Zapp to evaluate which product will
be purchased by the customers and which is not (Lagorio and Pinto, 2021). As per the
demand of the customers the company have to keep products.
 Warehouse and delivering cost – Along with the delivering cost Zapp have to bear the
warehouse cost also. The company have to keep it's products at one place that is at
warehouse from where they are able to deliver it's products or services. With this prices
of fuel or electricity keeps on changing but the prices charged by Zapp due not change so
sometime the company have to bear the extra cost on it's own.
 Changing tax rates – The tax rate charged by the government keeps on changing which
is the major challenges faced by Zapp (Alnaggar, Gzara and Bookbinder, 2021). With the
change in the tax rate the prices of products are also affecting and this leads to increase in
the prices of the products.
 Chances of ineffective delivery – Zapp is involved in delivering services the chances of
wrong delivery are high. It may happen that wrong or damage products are delivered to
the customers. This is how when the customers are provided with the wrong product then
the interest of the customers will be lost and this is how the brand value of the company
sometimes declines in front of the customer. With this the company promises to deliver
it's products within 20 minutes so it's a big task for the organisation to make a deliver to
the customers over a short period of time.

 Lack of technical knowledge among customers – The old generation is not much
interested in making online purchase because they are not aware about the working of
technical products. It is most commonly seen by Zapp that 40 plus age group use to make
mostly purchase for grocery items but as they are not able to use the app so they are fully
dependent of other. This is how they do not make online purchase and here company
loses it's customer base.
 Poor inventory management system – In order to be successful Zapp has to make a
proper inventory management system. As it is seemed by the management that due to
poor management of inventory they are getting a huge loss. The products got expired or
damage and no one is even aware about it, this is how profit of the company is affecting.
 Delivery at small towns – The organisation that is Zapp promises to deliver it's products
within 20 minutes so due to lack of proper infrastructure at small towns the organisation
made delay and this is how the trust of the customers from small town breaks and they
continues to make offline purchase from stores.
 Threat of cyber-attack – Zapp always be in threat because of the whole system work
through online web server. The whole data is stored on the online server so the hacker
could make misuse of all the data. With this the payment by customers is also made by
online mode. So the changes of hacking of details of customer’s data base is also high.
 Big competitors – There are many big players who are involved in the delivering
services. This is how Zapp threat that the they can provide attractive schemes to the
customers and seek their attention towards them. As the competitors are capable enough
to expand cost over promotion. So the brand image of the product is being created among
the customers and they may shift towards the competitors’ products.
Measures to overcome from the challenges faced by Zapp
When Zapp is able to take necessary actions timely then the challenges faced by them
could be resolved. The major solution that can be adopted by Zapp are as follows -
 Market research – With the help of research and development department, Zapp can
make the proper analysis of the market (Singh and Rosengren, 2020). They can analyse
the buying pattern of the customers along with their needs and wants. This will help them

in understanding requirements or the customers and changing pattern of the market and
the problem of rapid market change could be avoided.
 Inventory control software – Zapp can use the software through which they can easily
monitor the changes which are being occurred in the inventory. They can evaluate the
amount of goods available in their warehouse and how much more products will be
required to them. The unnecessary cost which is being occurred by the company will also
be cut down and the profit of the company will be increased.
 Adding innovation – Zapp have a large range of competitors so to beat them the
company can add some innovation is it's products and this is how they will be able to get
competitive advantage. With this the customers will also find the services of the company
attractive and will not shift towards the competitors’ products even low prices are
charged by the competitors.
 Attractive offers – The organisation that is Zapp can provide attractive offers to the
customers in order to seek their attention. The customers feel attracted towards the
product of the company when some attractive schemes are provided to them such at
discount offer of refer and earn offer. The customer’s engagement increases when this
type of offers are offered to them.
CONCLUSION
From the above presentation it can be concluded that, with the help of support agencies
the businesses can grow and expand. With this even the organisations are about of start they can
take help of the support agencies and can understood the challenges that could be faced by them
in upcoming years. The supporting agencies also helps in raising fund for the businesses. For
preparing this presentation the selected organisation is Zapp. There are certain challenges and
problems which are faced by the organisation like improper management of inventory, threat of
cyber-attack, huge amount of competitors in this industry. With this changes in the tax rate and
taste and preference of the customers are the external factors which affects the company. Later
on the step that organisation can take to over from this problem are use of inventory control
software, providing attractive offers to customers in order to seek their attention along with it
adding innovation in the services offered by them. The organisation can also do market research
to understand the needs and wants of the customers.

REFERENCES
Books and Journals:
Akinbola, O.A., Sanni, S.A. and Akinbola, O.S., 2019. Entrepreneurship Support Agencies
(ESA) and Development of Small and Medium Enterprises (SMEs) in
Nigeria. Economic Studies & Analyses/Acta VSFS, 13(1).
Alnaggar, A., Gzara, F. and Bookbinder, J.H., 2021. Crowdsourced delivery: A review of
platforms and academic literature. Omega, 98, p.102139.
Alnaggar, A., Gzara, F. and Bookbinder, J.H., 2021. Crowdsourced delivery: A review of
platforms and academic literature. Omega, 98, p.102139.
Lagorio, A. and Pinto, R., 2021. Food and grocery retail logistics issues: A systematic literature
review. Research in Transportation Economics, 87, p.100841.
Pourrahmani, E. and Jaller, M., 2021. Crowdshipping in last mile deliveries: Operational
challenges and research opportunities. Socio-Economic Planning Sciences, 78,
p.101063.
Robb, K. and Clark, L., 2021. The marketing situation of music public relation agencies in the
United Kingdom in relation to client acquisition methods and client search behaviour.
In Strategy, Leadership, and AI in the Cyber Ecosystem (pp. 285-303). Academic Press.
Singh, R. and Rosengren, S., 2020. Why do online grocery shoppers switch? An empirical
investigation of drivers of switching in online grocery. Journal of Retailing and
Consumer Services, 53, p.101962.
Wong, J., 2022. Sharing terrorism intelligence: insights from UK law enforcement
agencies. Journal of policing, intelligence and counter terrorism, 17(2), pp.218-228.